The First Ponzi Scheme- The South Sea Company

White Collars, Red Hands

This week we travel back to England at the turn of the 18th century when economic theory was in its infancy, which meant so too was the art of market manipulation. The South Sea Company and its evil mastermind John Blunt were meant to lend money to the government while making millions in trade to the Spanish New World. What happened though was a string of shams that would change the English government forever.